GRAPEVINE, Texas--(BUSINESS WIRE)--GreenHunter Resources, Inc. (NYSE MKT: GRH) (NYSE MKT: GRH.PRC), a diversified water resource, waste management, environmental services, and hydrocarbon marketing company specializing in the unconventional oil and natural gas shale resource plays in the Appalachian Basin, will be providing an operational update tomorrow morning, January 27, 2015, at 8:30 AM Central Standard Time in a management led conference call.
Operational Highlights Discussion Points Will Include:
- Raised approximately $2,000,000 through the direct placement of common stock (Financial Closing 1-27-15)
- Capital raise enables GreenHunter to complete the company’s Mills Hunter Facility located in Meigs County, Ohio
- Entered into the first lease agreement of a MAGTank™ by a major oil and gas company in the Appalachia Basin
- Received U.S. Coast Guard Approval for Barge Transportation along the Ohio River waterways
- Executed new take-or-pay contracts in 2014 in excess of 60,000 barrels per week
- Nearing completion of the second disposal well at the Company’s Ritchie Hunter Facility which will add approximately 2,000 barrels per day of SWD capacity
Proceeds generated from the direct placement of common stock completed last week are being allocated toward the completion of GreenHunter’s Mills Hunter SWD Facility, a facility that is anticipated to increase disposal volumes in excess of 16,000 barrels per day.
In addition to the Mills Hunter Facility, GreenHunter Resources also announced that it has now neared completion of the Company’s Ritchie Hunter Facility after drilling a second new disposal well in Ritchie County, West Virginia. This region has continued to be in high demand for SWD capacity. Combined increased disposal volumes from the Company’s Mills Hunter and Ritchie Hunter facilities is anticipated to drive company-wide disposal volumes up by approximately 15,500 barrels per day to more than 32,000 barrels per day.
During the fourth quarter of 2014 GreenHunter Resources also announced that it had received approval from the U.S. Coast Guard to transport disposal volumes along the Ohio River waterways via barge. GreenHunter Resources estimates that each 10,000 barrels of disposal volumes transported via barge will reduce trucking hours by approximately 600 hours. The reduced transport charges are anticipated to lead to significant margin improvement for GreenHunter Resources as well as potential cost savings for GreenHunter’s valued clients.
Increased demand for disposal volumes during 2014 also prompted GreenHunter Resources to engage in additional “take-or-pay” contracts. Take-or-pay contracts are designed to provide E&P operators with the ability to secure capacity for injection of produced fluids based on a specific quantity at a future date. GreenHunter Resources anticipates that demand for take-or-pay contracts will increase as demand for disposal volumes among E&P operators continues to increase in the region. Take-or-pay contracts at GreenHunter Resources now total more than 60,000 barrels of disposal volumes per week.
During the first quarter of 2015, GreenHunter Resources entered into a lease agreement of the Company’s MAGTank (Modular Above Ground Storage Tank) to a major oil company operating in the Appalachian Basin. The lease agreement represents GreenHunter’s third lease and/or sale of a MAGTank storage unit. GreenHunter’s MAGTank is a proprietary storage solution that is designed to allow E&P operators to significantly reduce storage costs, allow for minimal site disturbance and provide for expedited set-up and take-down times compared to traditional frac tanks and pits.
“Demand for services at GreenHunter Resources remains strong,” said Kirk Trosclair, Chief Operating Officer at GreenHunter Resources, Inc. “The $2 million raised through the direct placement of common stock will enable us to complete construction of our highly anticipated Mills Hunter facility. This facility, combined with our nearly completed Ritchie Hunter facility, will allow us to better serve our valued clients and increase disposal volumes from roughly 15,500 barrels per day to approximately 32,000 barrels per day.”
Trosclair continued, “At the same time, we’ve also executed additional take-or-pay contracts that will equal disposal volumes of approximately 60,000 barrels per week. We believe that the increase in take-or-pay contracts is a positive sign of the demand forces at work as a greater percentage of E&P operators seek to secure capacity for injection of produced fluids at quality facilities.”
Trosclair concluded, “While the increase in demand for services is an important component of our success, the improvement of increasing efficiencies at GreenHunter Resources is equally important. The U.S. Coast Guard approval is a significant 'win' for both GreenHunter Resources and our valued clients. Our ability to transport disposal volumes via barge will significantly reduce our costs, improve our margins and allow us to pass along savings to our clients. Along the same lines, the recently completed lease agreement of our MAGTank by a major oil company further diversifies our service offerings, allows us to reduce storage costs for today’s E&P operator and significantly limits the environmental impact of the surrounding area; clearly a win-win for our clients, the environment and GreenHunter Resources. We believe the MAGTank will set new standards for storage within the industry.”
GreenHunter Resources senior management will host a conference call on Tuesday morning, January 27, 2015, at 8:30 a.m. CT, to discuss recent macro-economic and other global events and trends affecting the energy sector in general, including their general influence on GreenHunter Resources’ business and operations. On the conference call, the Company will discuss other corporate related matters concerning the Company's operations, direct placement of common stock and other pertinent issues. During the conference call, following the Company's presentation, the Company will allow for a brief Q & A session with certain equity research analysts.
Individuals who would like to listen to the conference call should call (866) 900-8550 (Conference ID: 74329592) approximately 15 minutes before the scheduled conference call time. Following the conference call, an audio recording of the call will be posted on the Company's website, www.GreenHunterResources.com under "Investors," and will be available on the website for 12 months.
About GreenHunter Resources, Inc.
GreenHunter Resources, Inc., through its wholly-owned subsidiaries, GreenHunter Water, LLC, GreenHunter Environmental Solutions, LLC, and GreenHunter Hydrocarbons, LLC, provides Total Water Management Solutions™/Oilfield Fluid Management Solutions™ in the oilfield and its shale plays of the Appalachian Basin. GreenHunter Water continues to expand its services package by increasing down-hole injection capacity with Class II salt water disposal wells and facilities, with the launch of next-generation modular above-ground frac water storage tanks (MAGTank™), and with advanced water hauling – including a growing fleet of DOT rated 407 trucks, for hauling condensates and water with the presence of condensates. GreenHunter Water has also spearheaded the movement to barge brine water, as barging is a safer and more cost-effective mode of transport than trucking or rail.
GreenHunter Environmental Solutions, LLC offers onsite environmental solutions at the well pad and facilities, with a service package that includes tank and rig cleaning, liquid and solid waste removal/remediation, solidification, and spill response. An understanding that an interconnected suite of services is key to E&P waste stream management shapes GreenHunter Resources’ comprehensive end-to-end approach to services.
GreenHunter Hydrocarbons, LLC offers transportation of hydrocarbons (oil, condensate, and NGLs) and will soon offer storage, processing, and marketing of hydrocarbons (oil, condensate, and NGLs) in the Appalachian region, leveraging off of our existing asset base and infrastructure, which includes up to six different barge terminal locations, presently owned or leased by GreenHunter Resources.
For a visual animation of the Class II Salt Water Disposal well development and completion technique that is being utilized in GreenHunter Water’s Appalachia SWD program, navigate to the video by clicking on “Salt Water Disposal Animation” button on the Operations tab at GreenHunterEnergy.com or click here.
Additional information about GreenHunter Water may be found at www.GreenHunterWater.com.
Any statements in this press release about future expectations and prospects for GreenHunter Resources and its business and other statements containing the words "believes," "anticipates," "plans," "expects," "will" and similar expressions constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the substantial capital expenditures required to fund its operations, the ability of the Company to implement its business plan, government regulation and competition. GreenHunter Resources undertakes no obligation to update these forward-looking statements in the future.